FTC adds defendants to SoCal credit repair scam that defrauded consumers of $50 Million

CALIFORNIA – The Federal Trade Commission (FTC) announced May 19, that it added defendants in its case against the Growth Cave business opportunity and credit repair scam.

The FTC sued the Southern California-based company in February 2025, alleging that the operation had taken nearly $50 million from consumers using false promises of significant income.

A federal court issued a temporary restraining order freezing the defendants’ funds and halting its operations while the case continues.

The amended complaint names LLT Research as a defendant for supporting Lucas Lee-Tyson’s 2024 PassiveApps product. It also adds Friendly Solar, Inc. as a relief defendant, alleging it acted as a shell company for illicit earnings.

Scammers said they would help consumers market education courses on YouTube

According to the court document, through Growth Cave, LLC, Lee-Tyson has been deceptively marketing business opportunities and educational programs since at least 2021.

Lee-Tyson marketed the Knowledge Business Accelerator (KBA), a program claiming to help users create and sell digital education courses via targeted YouTube ads, according to the FTC.

He also promoted the Cashflow Consulting Academy (CCA), claiming it could generate tens of thousands monthly by contacting prospects for Growth Cave or its affiliates.

Defendant claimed consumers would make up to $50,000 in passive income

Lee-Tyson’s videos state that KBA will help purchasers launch and sell an online course within a few days or weeks, generating “$20,000–$50,000 per month in passive income.”

Consumers purchased Growth Cave’s business opportunities and related services for $3,500 to $50,000 each.

“The promised gains rarely, if ever, materialize, leaving purchasers of the business opportunities with depleted bank accounts, hefty credit card bills, and high-interest loans,” argued the FTC.

Growth Cave defendants went on to exploit financially struggling KBA and CCA buyers by selling a credit repair and 0% interest funding program.

Consumers paid thousands, to then be told to apply for multiple “business credit cards,” worsening their debt without receiving the promised credit repair help.

Business Opportunity Rule prohibits false claims

The FTC said it enforces the Business Opportunity Rule requiring clear disclosures and bans false claims when selling business opportunities.

Growth Cave violated the rule by failing to state the beginning and ending dates when the earnings were achieved and the percentage of buyers who earned the stated income, according to the FTC.

In addition to earnings claims, the Business Opportunity Rule requires sellers to provide a disclosure document – at least seven days before a contract is signed, with information about:

the seller’s litigation history;
refund policies;
and contact information for prior purchasers.

This ensures that prospective purchasers have the information they need in order to assess the risks of buying a work-at-home program or any other business opportunity.